Domestic stock indices opened on a muted note on Friday amid the lack of directional cues. The indices fell amid concerns over slowdown in the global economy.
Besides, investors were building up expectations ahead of December quarter earnings season, which will kick off with TCS’ results on Monday.
At 9.20 am, the 30-share pack BSE Sensex was trading 43 points, or 0.07 per cent, lower at 60,310. The NSE’s barometer Nifty50 was down 7 points, or 0.04 per cent, at 17,985.
Broader markets declined, with the BSE midcap and smallcap indices falling up to 0.15 per cent. The fear gauge eased 0.26 per cent to 14.94 level.
On a sectoral front, Nifty metal and FMCG indices were trading in the black. IT and PSU bank indices, on the other hand, retreated about 1 per cent each.
A sustained selling by FPIs is dragging the market lower.
Markets that underperformed last year such as China and Europe are instead doing well.
“Clearly, FPI money is chasing lower valuations. They are selling overvalued markets like India,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services..
“This trend might continue imparting weakness in the Indian market. This trend will open opportunities for investors. FIIs will sell stocks in which they are sitting on profits, like the banking segment. This segment continues to be strong,” Vijayakumar said.
Vijayakumar said the phenomenon of good economic news becoming bad news for the market might continue in the near term.”
Among Nifty50 stocks, Coal India slipped more than 1 per cent while Bajaj Finserv TCS, ICICI Bank, JSW Steel and Axis Bank declined about 1 per cent each.
Among other gainers, Reliance, ITC, Apollo Hospitals, HDFC Life, Hindalco, Nestle India and Adani Entertainment gained over 1 per cent each.
In the broader market, Rama Steel, National Peroxide, Sigachi Industries, Indo Amines, Astra Micro jumped 8-12 per cent each. BF Investments, VLS Finance and Home First Finance were among the top losers with 6 per cent fall.
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